Novanta
Novanta Inc., together with its subsidiaries, designs, manufactures, markets, and sells photonics, vision, and precision motion components and sub-systems to original equipment manufacturers in the medical and industrial markets worldwide. The last earnings update was 26 days ago. More info.
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- Novanta has significant price volatility in the past 3 months.
NOVT Share Price and Events
7 Day Returns
1 Year Returns
NOVT Shareholder Return
| 7 Day | 30 Day | 90 Day | 1 Year | 3 Year | 5 Year | |
|---|---|---|---|---|---|---|
| Novanta (NOVT) | 0.6% | 7.4% | 45.7% | 57.5% | 500% | 546.4% |
| US Electronic | -2.4% | -3.4% | 25.2% | 2.8% | 56.9% | 55.8% |
| US Market | -1.1% | -0.2% | 19.7% | 5.8% | 37.9% | 41.7% |
1 Year Return vs Industry and Market
- NOVT outperformed the Electronic industry which returned 2.8% over the past year.
- NOVT outperformed the Market in United States of America which returned 5.8% over the past year.
NOVT Value
Is Novanta undervalued based on future cash flows and its price relative to the stock market?
Value is all about what a company is worth versus what price it is
available for. If you went into a grocery store and all the bananas were on sale
at half price, they could be considered
undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current
share
price of
Novanta
to its discounted cash flow analysis.value.The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Below are the data sources, inputs and calculation used to determine the intrinsic value for Novanta.
| Data Point | Source | Value |
|---|---|---|
| Valuation Model | 2 Stage Free Cash Flow to Equity | |
| Levered Free Cash Flow | Average of 3 Analyst Estimates (S&P Global) | See below |
| Discount Rate (Cost of Equity) | See below | 9.2% |
| Perpetual Growth Rate | 10-Year US Government Bond Rate | 2.7% |
An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.
| Data Point | Calculation/ Source | Result |
|---|---|---|
| Risk-Free Rate | 10-Year US Govt Bond Rate | 2.7% |
| Equity Risk Premium | S&P Global | 6% |
| Electronic Unlevered Beta | Simply Wall St/ S&P Global | 1.07 |
| Re-levered Beta | = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.065 (1 + (1- 21%) (7.04%)) |
1.083 |
| Levered Beta | Levered Beta limited to 0.8 to 2.0 (practical range for a stable firm) |
1.08 |
| Discount Rate/ Cost of Equity |
= Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.083 * 5.96%) |
9.19% |
Discounted Cash Flow Calculation for NasdaqGS:NOVT using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for Novanta is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
| Levered FCF (USD, Millions) | Source |
Present Value Discounted (@ 9.19%) |
|
|---|---|---|---|
| 2019 | 87.75 | Analyst x1 | 80.36 |
| 2020 | 96.91 | Analyst x1 | 81.29 |
| 2021 | 104.42 | Est @ 7.75% | 80.22 |
| 2022 | 110.94 | Est @ 6.24% | 78.06 |
| 2023 | 116.70 | Est @ 5.19% | 75.20 |
| 2024 | 121.89 | Est @ 4.45% | 71.94 |
| 2025 | 126.69 | Est @ 3.94% | 68.48 |
| 2026 | 131.22 | Est @ 3.57% | 64.96 |
| 2027 | 135.58 | Est @ 3.32% | 61.47 |
| 2028 | 139.84 | Est @ 3.14% | 58.06 |
| Present value of next 10 years cash flows | $720.02 | ||
| Calculation | Result | |
|---|---|---|
| Terminal Value |
= FCF2028
× (1 + g) ÷ (Discount Rate – g)
= $139.84 × (1 + 2.73%) ÷ (9.19% – 2.73%) |
$2,224.71 |
| Present Value of Terminal Value |
= Terminal Value ÷ (1 + r)10
= $2,224.71 ÷ (1 + 9.19%)10 |
$923.74 |
| Calculation | Result | |
|---|---|---|
| Total Equity Value |
= Present value of next 10 years cash flows +
Terminal Value
= $720.02 + $923.74 |
$1,643.76 |
| Equity Value per Share (USD) |
= Total value / Shares Outstanding
= $1,643.76 / 34.90 |
$47.1 |
| Calculation | Result | |
|---|---|---|
| Value per share (USD) | From above. | $47.10 |
| Current discount | Discount to share price of
$84.42
= -1 x ($84.42 - $47.10) / $47.10 |
-79.2% |
Learn more about our DCF calculations in Simply Wall St’s analysis model .
- The current share price of Novanta is above its future cash flow value.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.The amount the stock market is willing to pay for Novanta's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are
Novanta's earnings available for a low price, and how does
this compare to other companies in the same industry?
| Data Point | Source | Value |
|---|---|---|
| Earnings Per Share * | Company Filings (2018-12-31) in USD | $1.46 |
| NasdaqGS:NOVT Share Price ** | NasdaqGS (2019-03-25) in USD | $84.42 |
| United States of America Electronic Industry PE Ratio | Median Figure of 92 Publicly-Listed Electronic Companies | 19.06x |
| United States of America Market PE Ratio | Median Figure of 3,061 Publicly-Listed Companies | 17.17x |
* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.
** Primary Listing of Novanta.
| Calculation | Outcome | |
|---|---|---|
| PE Ratio | = NasdaqGS:NOVT Share Price ÷ EPS (both in USD) = 84.42 ÷ 1.46 |
57.92x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Novanta is overvalued based on earnings compared to the US Electronic industry average.
- Novanta is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does
Novanta's expected growth come at a high price?
| Data Point | Source | Value |
|---|---|---|
| PE Ratio | See PE Ratio Section | 57.92x |
| Net Income Annual Growth Rate | See Future Growth Section. Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts |
20.6%per year |
| United States of America Electronic Industry PEG Ratio | Median Figure of 60 Publicly-Listed Electronic Companies | 1.5x |
| United States of America Market PEG Ratio | Median Figure of 2,104 Publicly-Listed Companies | 1.45x |
*Line of best fit is calculated by linear regression .
| Calculation | Outcome | |
|---|---|---|
| PEG Ratio | = PE Ratio ÷ Net Income Annual Growth Rate = 57.92x ÷ 20.6% |
2.81x |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Novanta is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on
Novanta's
assets?
| Data Point | Source | Value |
|---|---|---|
| Book Value per Share | Company Filings (2018-12-31) in USD | $10.56 |
| NasdaqGS:NOVT Share Price * | NasdaqGS (2019-03-25) in USD | $84.42 |
| United States of America Electronic Industry PB Ratio | Median Figure of 151 Publicly-Listed Electronic Companies | 2.01x |
| United States of America Market PB Ratio | Median Figure of 5,166 Publicly-Listed Companies | 1.85x |
| Calculation | Outcome | |
|---|---|---|
| PB Ratio | = NasdaqGS:NOVT Share Price ÷ Book Value per Share (both in USD) = 84.42 ÷ 10.56 |
8x |
* Primary Listing of Novanta.
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Novanta is overvalued based on assets compared to the US Electronic industry average.
Value checks
We assess Novanta's value by looking at:- Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
- Is the PE ratio less than the market average, and/ or less than the Electronic industry average (and greater than 0)? (2 checks)
- Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
- Is the PB ratio less than the Electronic industry average (and greater than 0)? (1 check) Novanta has a total score of 0/6, see the detailed checks below.
Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.
Full details on the Value part of the Simply Wall St company analysis model.
NOVT Future Performance
How is Novanta expected to perform in the next 1 to 3 years based on estimates from 3 analysts?
The future performance of a company is measured in the same way as past
performance, by looking at estimated
growth
and how much profit it is expected to make.Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Earnings growth vs Low Risk Savings
- Novanta's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
- Novanta's earnings growth is expected to exceed the United States of America market average.
- Novanta's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
| Data Point | Source | Value (per year) |
|---|---|---|
| NasdaqGS:NOVT Future Earnings Growth Rate | Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts | 20.6% |
| NasdaqGS:NOVT Future Revenue Growth Rate | Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts | 5.8% |
| United States of America Electronic Industry Earnings Growth Rate | Market Cap Weighted Average | 17% |
| United States of America Electronic Industry Revenue Growth Rate | Market Cap Weighted Average | 5.6% |
| United States of America Market Earnings Growth Rate | Market Cap Weighted Average | 14.2% |
| United States of America Market Revenue Growth Rate | Market Cap Weighted Average | 7.1% |
*Line of best fit is calculated by linear regression .
Industry and Market average data is calculated daily.
Learn more about our growth rate calculations in Simply Wall St’s analysis model.
Analysts growth expectations
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 3 Analyst Estimates (S&P Global) | See Below |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * | Avg. No. Analysts |
|---|---|---|---|---|
| 2020-12-31 | 690 | 77 | 3 | |
| 2019-12-31 | 651 | 64 | 3 |
| Date (Data in USD Millions) | Revenue | Cash Flow | Net Income * |
|---|---|---|---|
| 2018-12-31 | 614 | 90 | 51 |
| 2018-09-28 | 605 | 90 | 39 |
| 2018-06-29 | 591 | 74 | 18 |
| 2018-03-30 | 559 | 71 | 12 |
| 2017-12-31 | 521 | 63 | 40 |
| 2017-09-29 | 473 | 54 | 48 |
| 2017-06-30 | 425 | 54 | 55 |
| 2017-03-31 | 403 | 52 | 54 |
| 2016-12-31 | 385 | 48 | 22 |
| 2016-09-30 | 376 | 43 | 20 |
| 2016-07-01 | 371 | 43 | 19 |
| 2016-04-01 | 369 | 36 | 34 |
*GAAP earnings excluding extraordinary items.
Past and Future Earnings per Share
| Data Point | Source | Value |
|---|---|---|
| Past Financials | Company Filings (2 months ago) | See Below |
| Future Estimates | Average of up to 3 Analyst Estimates (S&P Global) | See Below |
All data from Novanta Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | EPS * | EPS High Estimate | EPS Low Estimate | Avg. No. Analysts |
|---|---|---|---|---|
| 2020-12-31 | 2.18 | 2.23 | 2.12 | 2.00 |
| 2019-12-31 | 1.80 | 1.81 | 1.79 | 2.00 |
| Date (Data in USD Millions) | EPS * |
|---|---|
| 2018-12-31 | 1.46 |
| 2018-09-28 | 1.12 |
| 2018-06-29 | 0.51 |
| 2018-03-30 | 0.35 |
| 2017-12-31 | 1.14 |
| 2017-09-29 | 1.37 |
| 2017-06-30 | 1.59 |
| 2017-03-31 | 1.57 |
| 2016-12-31 | 0.63 |
| 2016-09-30 | 0.59 |
| 2016-07-01 | 0.56 |
| 2016-04-01 | 0.98 |
*GAAP earnings excluding extraordinary items.
Performance in 3 years
In the same way as past performance we look at the future estimated return
(profit) compared to the available
funds. We do this looking forward 3 years.
- Unable to establish if Novanta will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
Future performance checks
We assess Novanta's future performance by looking at:- Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
- Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
- Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
- Is the annual earnings growth rate expected to be above 20%? (1 check)
- Is the annual revenue growth rate expected to be above 20%? (1 check)
- Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Novanta has a total score of 3/6, see the detailed checks below.
Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.
Full details on the Future part of the Simply Wall St company analysis model.
NOVT Past Performance
How has Novanta performed over the past 5 years?
The past performance of a company can be measured by how much
growth
it has experienced and how much profit it makes relative to the funds and assets
it has available.
Past earnings growth
Past Earnings growth analysis
- Novanta has delivered over 20% year on year earnings growth in the past 5 years.
- Novanta's 1-year earnings growth is less than its 5-year average (27.8% vs 34.1%)
- Novanta's earnings growth has not exceeded the US Electronic industry average in the past year (27.8% vs 64.8%).
Earnings and Revenue History
All data from Novanta Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.
| Date (Data in USD Millions) | Revenue | Net Income * | G+A Expenses | R&D Expenses |
|---|---|---|---|---|
| 2018-12-31 | 614.34 | 50.89 | 115.95 | 51.02 |
| 2018-09-28 | 605.08 | 39.17 | 115.35 | 49.54 |
| 2018-06-29 | 590.58 | 17.69 | 113.79 | 47.99 |
| 2018-03-30 | 559.28 | 12.07 | 108.37 | 44.45 |
| 2017-12-31 | 521.29 | 39.81 | 101.65 | 41.67 |
| 2017-09-29 | 473.25 | 47.64 | 93.61 | 37.85 |
| 2017-06-30 | 424.78 | 55.16 | 85.69 | 34.15 |
| 2017-03-31 | 403.42 | 54.35 | 82.08 | 33.17 |
| 2016-12-31 | 384.76 | 22.00 | 81.30 | 32.00 |
| 2016-09-30 | 376.10 | 20.35 | 80.14 | 31.32 |
| 2016-07-01 | 370.54 | 19.45 | 80.44 | 31.06 |
| 2016-04-01 | 369.30 | 34.09 | 81.17 | 30.88 |
| 2015-12-31 | 373.60 | 35.63 | 82.05 | 31.04 |
| 2015-10-02 | 377.39 | 1.24 | 84.81 | 31.59 |
| 2015-07-03 | 379.78 | -0.21 | 86.34 | 31.63 |
| 2015-04-03 | 380.19 | -16.32 | 86.83 | 31.31 |
| 2014-12-31 | 364.71 | -16.92 | 84.38 | 28.95 |
| 2014-09-26 | 352.91 | 16.09 | 81.81 | 26.94 |
| 2014-06-27 | 338.11 | 13.23 | 79.30 | 25.24 |
| 2014-03-28 | 320.97 | 11.09 | 77.27 | 23.83 |
| 2013-12-31 | 316.91 | 9.96 | 76.34 | 23.79 |
| 2013-09-27 | 301.11 | 20.12 | 73.48 | 23.42 |
| 2013-06-28 | 290.77 | 19.90 | 70.60 | 22.94 |
| 2013-03-29 | 281.38 | 23.09 | 68.07 | 22.44 |
| 2012-12-31 | 243.80 | 28.26 | 59.71 | 18.53 |
| 2012-09-28 | 270.57 | 10.17 | 65.01 | 22.45 |
| 2012-06-29 | 279.75 | 15.49 | 65.52 | 23.08 |
| 2012-03-30 | 291.98 | 17.95 | 67.31 | 23.35 |
*GAAP earnings excluding extraordinary items.
Performance last year
We want to ensure a company is making the most of what it has available. This is
done by comparing the return (profit) to a company's available
funds,
assets
and
capital.
- Novanta has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
- Novanta used its assets more efficiently than the US Electronic industry average last year based on Return on Assets.
- Novanta has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
Past performance checks
We assess Novanta's performance over the past 5 years by checking for:- Has earnings increased in past 5 years? (1 check)
- Has the earnings growth in the last year exceeded that of the Electronic industry? (1 check)
- Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
- Is the Return on Equity (ROE) higher than 20%? (1 check)
- Is the Return on Assets (ROA) above industry average? (1 check)
- Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
Novanta has a total score of 3/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
Full details on the Past part of the Simply Wall St company analysis model.
NOVT Health
How is Novanta's financial health and their level of debt?
A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).The boxes below represent the relative size of what makes up Novanta's finances.
The net worth of a company is the difference between its assets and liabilities.
- Novanta is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
- Novanta's cash and other short term assets cover its long term commitments.
Balance sheet
Assets
Liabilities and shares
- High level of physical assets or inventory.
- Debt is covered by short term assets, assets are 1.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
All data from Novanta Company Filings, last reported 2 months ago.
| Date (Data in USD Millions) | Total Equity | Total Debt | Cash & Short Term Investments |
|---|---|---|---|
| 2018-12-31 | 368.26 | 207.38 | 82.04 |
| 2018-09-28 | 359.68 | 256.42 | 111.81 |
| 2018-06-29 | 375.97 | 237.43 | 107.26 |
| 2018-03-30 | 373.53 | 233.22 | 111.13 |
| 2017-12-31 | 358.47 | 234.62 | 100.06 |
| 2017-09-29 | 345.99 | 251.10 | 92.15 |
| 2017-06-30 | 331.90 | 119.45 | 89.13 |
| 2017-03-31 | 316.29 | 126.24 | 80.01 |
| 2016-12-31 | 258.87 | 86.03 | 68.11 |
| 2016-09-30 | 257.20 | 88.03 | 64.74 |
| 2016-07-01 | 249.59 | 95.13 | 60.50 |
| 2016-04-01 | 247.22 | 103.11 | 67.89 |
| 2015-12-31 | 244.70 | 104.98 | 59.96 |
| 2015-10-02 | 239.98 | 116.56 | 80.09 |
| 2015-07-03 | 234.59 | 125.52 | 81.05 |
| 2015-04-03 | 211.28 | 132.58 | 47.54 |
| 2014-12-31 | 211.25 | 121.88 | 51.15 |
| 2014-09-26 | 248.78 | 130.70 | 53.55 |
| 2014-06-27 | 246.50 | 147.84 | 45.01 |
| 2014-03-28 | 243.67 | 136.63 | 31.74 |
| 2013-12-31 | 242.40 | 71.50 | 60.98 |
| 2013-09-27 | 233.27 | 78.38 | 53.69 |
| 2013-06-28 | 226.83 | 95.25 | 52.06 |
| 2013-03-29 | 226.48 | 103.13 | 36.34 |
| 2012-12-31 | 228.21 | 50.00 | 65.79 |
| 2012-09-28 | 219.09 | 47.50 | 52.86 |
| 2012-06-29 | 218.28 | 53.00 | 55.76 |
| 2012-03-30 | 213.36 | 55.50 | 50.36 |
- Novanta's level of debt (56.3%) compared to net worth is high (greater than 40%).
- The level of debt compared to net worth has increased over the past 5 years (29.8% vs 56.3% today).
- Debt is well covered by operating cash flow (43.2%, greater than 20% of total debt).
- Interest payments on debt are well covered by earnings (EBIT is 8.1x coverage).
Financial health checks
We assess Novanta's financial health by checking for:- Are short term assets greater than short term liabilities? (1 check)
- Are short term assets greater than long term liabilities? (1 check)
- Has the debt to equity ratio increased in the past 5 years? (1 check)
- Is the debt to equity ratio over 40%? (1 check)
- Is the debt covered by operating cash flow? (1 check)
- Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check) Novanta has a total score of 4/6, see the detailed checks below.
- Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
- Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
Full details on the Health part of the Simply Wall St company analysis model.
NOVT Dividends
What is Novanta's current dividend yield, its reliability and sustainability?
Dividends are regular cash payments to you from the company, similar to a
bank paying you interest on a savings account.
Annual Dividend Income
If you bought
$2,000 of
Novanta
shares you are expected to receive
$0
in your first year as a dividend.
Dividend Amount
- Unable to evaluate Novanta's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
- Unable to evaluate Novanta's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not
wildly increasing/decreasing each year. This graph shows you the historical rate
to count toward your assessment of the stock.We also check to see if the dividend has increased in the past 10 years.
| Data Point | Source | Value |
|---|---|---|
| Past Annualized Dividend Yield | S&P Global Market Data | See Below |
| Past Dividends per Share | Company Filings/ Annualized Dividend Payments | See Below |
| Future Dividends per Share Estimates | Average of up to 3 Analyst Estimates (S&P Global) | See Below |
| United States of America Electronic Industry Average Dividend Yield | Market Cap Weighted Average of 38 Stocks | 1.6% |
| United States of America Market Average Dividend Yield | Market Cap Weighted Average of 2003 Stocks | 2.5% |
| United States of America Minimum Threshold Dividend Yield | 10th Percentile | 0.9% |
| United States of America Bottom 25% Dividend Yield | 25th Percentile | 1.5% |
| United States of America Top 25% Dividend Yield | 75th Percentile | 3.7% |
Industry and Market average data is calculated daily.
Note all dividend per share amounts are annualized and not quarterly or other period.
| Date (Data in $) | Dividend per Share (annual) | Avg. No. Analysts |
|---|---|---|
| 2020-12-31 | ||
| 2019-12-31 |
Learn more about our ratios and growth rates in Simply Wall St’s analysis model >
- Unable to perform a dividend volatility check as Novanta has not reported any payouts.
- Unable to verify if Novanta's dividend has been increasing as the company has not reported any payouts.
Income/ dividend checks
We assess Novanta's dividend by checking for:- Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
- Is current dividend yield above the bottom 25% of dividend payers? (1 check)
- Is current dividend yield above the top 25% of dividend payers? (1 check)
- Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
- If they have paid a dividend for 10 years has it increased in this time? (1 check)
- How sustainable is the dividend, can Novanta afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks) Novanta has a total score of 0/6, see the detailed checks below.
Full details on the Dividends part of the Simply Wall St company analysis model.
NOVT Management
CEO
| COMPENSATION | $3,629,499 |
| AGE | 49 |
| TENURE AS CEO | 2.5 years |
CEO Bio
Mr. Matthijs Glastra has been the Chief Executive Officer and Director of Novanta Inc. (alternate name: GSI Group Inc.) since September 1, 2016 and was its Executive Officer since September 2012. Mr. Glastra served as its Chief Operating Officer from February 26, 2015 to September 1, 2016. Mr. Glastra served as the Chief Executive Officer of Vari-Lite, Inc. He served as Group President of Medical Technologies and Laser Products at GSI Group Inc. since November 2013 until February 26, 2015 and served as its Group President of Laser Products October 15, 2012 and also served as its Corporate Officer since September 6, 2012. He served as an Executive Vice President of Worldwide Operations at Philips LumiLeds Lighting Company LLC since 2007. In 2003, he started in the Lighting division as the Senior Director of Marketing & Sales for Special Lighting and then returned to the Netherlands to lead Philips' LCD Backlighting business. Mr. Glastra holds degrees in Applied Physics and Electronics at Delft University of Technology in The Netherlands and Grande Ecole Supérieure de Physiques et Chimie Industrielles in Paris, France and an MBA at INSEAD, the leading European Business School.
CEO Compensation
- Matthijs's compensation has increased by more than 20% in the past year.
- Matthijs's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure
Average tenure and age of the Novanta management team in years:
- The tenure for the Novanta management team is about average.
Management Team
Matthijs Glastra
CEO & Director
$4M
49
2.5 yrs
Robert Buckley
Chief Financial Officer
$2M
44
8 yrs
Brian Young
Chief Human Resources Officer
$905K
49
2.3 yrs
Peter Chang
VP, Corporate Controller & Chief Accounting Officer
53
7.6 yrs
Heinrich Dreyer
Group President of Minimally Invasive Surgery
0.9 yrs
Board of Directors Tenure
Average tenure and age of the Novanta board of directors in years:
- The tenure for the Novanta board of directors is about average.
Board of Directors
Stephen Bershad
Chairman
$250K
76
8.7 yrs
Matthijs Glastra
CEO & Director
$4M
49
2.5 yrs
Ira Lamel
Independent Director
$140K
70
8.7 yrs
Thomas Secor
Independent Director
$125K
47
6.8 yrs
Dominic Romeo
Independent Director
$125K
58
6.8 yrs
Brian King
Independent Director
$81K
51
1.8 yrs
Lonny Carpenter
Director
56
0.8 yrs
Who owns this company?
Recent Insider Transactions
| Announced | Type | Name | Entity | Role | Start | End | Shares | Max Price ($) | Value ($) | |
|---|---|---|---|---|---|---|---|---|---|---|
| 19. Nov 18 | Sell | Stephen Bershad | Individual | 15. Nov 18 | 15. Nov 18 | -500,000 | $68.15 | $-34,075,000 | ||
| 20. Aug 18 | Sell | Peter Chang | Individual | 17. Aug 18 | 17. Aug 18 | -3,680 | $70.63 | $-259,904 | ||
Management checks
We assess Novanta's management by checking for:- Is the CEO's compensation unreasonable compared to market cap? (1 check)
- Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
- Is the average tenure of the management team less than 2 years? (1 check)
- Is the average tenure of the board of directors team less than 3 years? (1 check) Novanta has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.
Note: We use the top 6 management executives and board members in our calculations.
Note 2: Insider trading include any internal stakeholders and these transactions .
Full details on the Management part of the Simply Wall St company analysis model.
NOVT News
Simply Wall St News
Have Insiders Been Selling Novanta Inc. (NASDAQ:NOVT) Shares?
So shareholders might well want to know whether insiders have been buying or selling shares in Novanta Inc. … That means that an insider was selling shares at slightly below the current price (US$83.03). … Over the last year we saw more insider selling of Novanta shares, than buying
Simply Wall St - – Full articleDid Novanta Inc.'s (NASDAQ:NOVT) Recent Earnings Growth Beat The Trend?
Investors with a long-term horizong may find it valuable to assess Novanta Inc.'s (NASDAQ:NOVT) earnings trend over time and against its industry benchmark as opposed to simply looking at a sincle earnings announcement at one point in time. … NOVT's trailing twelve-month earnings (from 31 December 2018) of US$51m has. … However, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 34%, indicating the rate at which NOVT is growing has slowed down
Simply Wall St - – Full articleWhat Does Novanta Inc.'s (NASDAQ:NOVT) Share Price Indicate?
saw a significant share price rise of over 20% in the past couple of months on the NASDAQGS. … As a well-established company, which tends to be well-covered by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock? … Today I will analyse the most recent data on Novanta’s outlook and valuation to see if the opportunity still exists
Simply Wall St - – Full articleNovanta Inc. (NASDAQ:NOVT): Time For A Financial Health Check
Small and large cap stocks are widely popular for a variety of reasons, however, mid-cap companies such as Novanta Inc. … (NASDAQ:NOVT), with a market cap of US$2.4b, often get neglected by retail investors. … While they are less talked about as an investment category, mid-cap risk-adjusted returns have generally been better than more commonly focused stocks that fall into the small- or large-cap categories.
Simply Wall St - – Full articleNovanta Inc. (NASDAQ:NOVT) Delivered A Better ROE Than Its Industry
While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … Our data shows Novanta has a return on equity of 14% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity
Simply Wall St - – Full articleAre Insiders Selling Novanta Inc. (NASDAQ:NOVT) Stock?
So we'll take a look at whether insiders have been buying or selling shares in Novanta Inc. … In the last twelve months, the biggest single sale by an insider was when Chairman Stephen Bershad sold US$34m worth of shares at a price of US$68.15 per share. … Over the last year, we note insiders sold 503.68k shares worth US$34m.
Simply Wall St - – Full articleWhat Should You Know About Novanta Inc's (NASDAQ:NOVT) Capital Returns?
This share represents a portion of capital used by the company to operate the business, and it is important the company is able to use the capital base efficiently to create adequate cash flows for you as an investor. … You need to pay attention to this because your return on investment is linked to dividends and internal investments to improve the business, which can only occur if the company is expected to produce adequate earnings with the capital that has been provided. … To understand Novanta’s capital returns we will look at a useful metric called return on capital employed.
Simply Wall St - – Full articleWhat Does Novanta Inc's (NASDAQ:NOVT) P/E Ratio Tell You?
The goal of this article is to teach you how to use price to earnings ratios (P/E ratios). … We'll look at Novanta Inc's (NASDAQ:NOVT) P/E ratio and reflect on what it tells us about the company's share price. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)
Simply Wall St - – Full articleNovanta Inc (NASDAQ:NOVT): Time For A Financial Health Check
Investors are always looking for growth in small-cap stocks like Novanta Inc (NASDAQ:NOVT), with a market cap of US$2.0b. … However, an important fact which most ignore is: how financially healthy is the business? … Assessing first and foremost the financial health is
Simply Wall St - – Full articleIs Novanta Inc's (NASDAQ:NOVT) Balance Sheet A Threat To Its Future?
Small-cap and large-cap companies receive a lot of attention from investors, but mid-cap stocks like Novanta Inc (NASDAQ:NOVT), with a market cap of US$2.28b, are often out of the spotlight. … However, history shows that overlooked mid-cap companies have performed better on a risk-adjusted manner than the smaller and larger segment of the market. … NOVT’s financial liquidity and debt position will be analysed in this article, to get an idea of whether the company can fund opportunities for strategic growth and maintain strength through economic downturns.
Simply Wall St - – Full articleNOVT Company Info
Description
Novanta Inc., together with its subsidiaries, designs, manufactures, markets, and sells photonics, vision, and precision motion components and sub-systems to original equipment manufacturers in the medical and industrial markets worldwide. The company’s Photonics segment offers photonics-based solutions, including laser scanning and laser beam delivery, CO2 laser, continuous wave and ultrafast laser, and optical light engine products for photonics-based applications, such as industrial material processing, metrology, medical and life science imaging, DNA sequencing, and medical laser procedures. Its Vision segment provides a range of medical grade technologies, including medical insufflators, pumps, and related disposables; visualization solutions; wireless imaging and operating room integration technologies; optical data collection and machine vision technologies; radio frequency identification technologies; thermal chart recorders; spectrometry technologies; and embedded touch screen solutions. The company’s Precision Motion segment offers optical and inductive encoders, precision motors, motion control sub-assemblies, air bearings, air bearing spindles, and precision machined components. It sells its products through its direct sales force, resellers, distributors, and system integrators under the Cambridge Technology, Lincoln Laser, ExoTec Precision, Synrad, Laser Quantum, WOM, NDS, NDSsi, Reach Technology, JADAK, ThingMagic, Photo Research, General Scanning, Celera Motion, MicroE, Applimotion, Zettlex, and Westwind brands. The company was formerly known as GSI Group, Inc. and changed its name to Novanta Inc. in May 2016. Novanta Inc. was founded in 1968 and is headquartered in Bedford, Massachusetts.
Details
| Name: | Novanta Inc. |
| NOVT | |
| Exchange: | NasdaqGS |
| Founded: | 1968 |
| $2,946,308,567 | |
| 34,900,599 | |
| Website: | http://www.novanta.com |
| Address: |
Novanta Inc. 125 Middlesex Turnpike, Bedford, Massachusetts, 01730, United States |
Listings
| Exchange Symbol | Ticker Symbol | Security | Exchange | Country | Currency | Listed on | |
|---|---|---|---|---|---|---|---|
| NasdaqGS | NOVT | Common Shares | Nasdaq Global Select | US | USD | 28. Sep 1995 | |
| DB | 1GSN | Common Shares | Deutsche Boerse AG | DE | EUR | 28. Sep 1995 | |
| LSE | 0VAG | Common Shares | London Stock Exchange | GB | USD | 28. Sep 1995 |
Number of employees
Current staff
Industry
| Electronic Equipment and Instruments | |
| Tech |
Company Analysis and Financial Data Status
| Area | Date (UTC time) |
|---|---|
| Company Analysis updated: | 2019/03/25 23:36 |
| End of day share price update: | 2019/03/25 00:00 |
| Last estimates confirmation: | 2019/02/28 |
| Last earnings filing: | 2019/02/27 |
| Last earnings reported: | 2018/12/31 |
| Last annual earnings reported: | 2018/12/31 |
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.
